Spillover effect of inflation in Indonesia

Spillover effect of inflation in Indonesia | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Spillover effect of inflation in Indonesia Dwi Widiarsih, Werry Darta Taifur, Endrizal Ridwan, Doddy Devianto This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-3831343/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract The economic benefits of inflation analysis are generated after a shock or after the regions interact. This research is spatial panel modeling. The weighting matrix used is Double Power Distance Weights wich gives the best result using Spatial Autoregressive (SAR) model with Fixed Effect Model (FEM). Spatially, inflation in a region has an impact on 2 nearby regions with high correlation. Impact measure is the significant impact of infrastructure, Bank Indonesia Performance (BI performance), Locally-Generated Revenue (PAD), government spending, and energy consumption on inflation, both directly and indirectly. Analysis of the p-value is smaller than the alpha of 5% and 10%, so the direct effect on PAD, government spending, infrastructure, BI performance, and energy consumption is significant on inflation in Indonesia. The findings are interesting because the value of indirect impact is greater than the direct impact, so it can be interpreted that the interaction factor between regions is very strong. Accessibility of infrastructure between regions causes interaction and mobilization to occur. The findings of this research provide recommendations that the government needs to improve physical connectivity (roads, toll roads, bridges, airports, ports, etc.), both for the western and eastern regions of Indonesia. Elements of government fiscal policy with a countercyclical character in managing government finances as well as efficiency in energy management & consumption in creating lower energy intensity values can be recommended because they are determining factors for controlling Indonesia's inflation. Inflation Panel Data Spasial Model Spillover effect Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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